CHICAGO – The Financial Industry Regulatory Authority has begun examining municipal bond dealers’ compliance with the Municipal Securities Rulemaking Board’s recently released interpretive guidance to Rule G-17, which spells out underwriters’ fair-dealing obligations to municipal issuers.

Cynthia Friedlander, FINRA’s associate director of fixed income regulation, told attendees at Bond Dealers of America’s annual National Fixed Income Conference here that FINRA examiners will first determine if muni bond dealers have created written supervisory procedures specifying how they will comply with the guidance, which took effect Aug. 2.

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